Yes, that is pretty much what everyone sets their speakers at. 80Hz for the towers is where you should probably have it set. The surrounds, I'd do at 100Hz (90Hz at a minimum). The centre I'd do at 90Hz.
Assuming that that's the volume/gain, that's fine. You can turn it up or down a bit if you feel there's not enough or too much "oomph."
1. Turn the crossover knob all the way to max - because you're letting the AVR determine what frequencies to send to the sub by having the LFE set to 120Hz, turning it to max on the subwoofer eliminates any potential conflict between the two devices. You can lower the LFE setting in the AVR, but doing so might increase the chances of sub localization.
2. Turn/Flip that to 0. You could probably set it to 180 since you just have the one sub, but putting it at 0 is perfectly fine, and what almost everyone does with one subwoofer.
3. Select by-passed, but still have the Frequency knob turned to max.